Traverse City, MI – August 4, 2010… Speaking at the CAR
Management Briefing Seminars today, Jim O’Donnell, President of
BMW of North America, LLC, gave an optimistic outlook on the future of
the premium market and BMW’s role as global leader of the
segment. “In these times of change, the premium business
has the opportunity to re-imagine mobility and change an established
infrastructure and mindset that has been a 100 years in the
making,” said O’Donnell. “You can be sure we
and our competitors in the segment will not stray from this
responsibility and will continue to invest heavily in the years ahead.”

According to O’Donnell, the premium market will continue to
drive innovations across the entire value chain that quickly filters
down to the mass market benefiting the entire automotive
industry. Governments also recognize this contribution and now
regularly ask for insight, perspective and experience from companies
such as the BMW Group.

To live up to this responsibility, premium manufacturers have come to
a good understanding of the driving forces and trends behind the
current changes in the market place.

Most importantly, the economic recession has changed the way
consumers view and purchase all premium products with a profound
effect on the auto industry. In the future, people will take
greater care with major purchases and as a result, consumers might buy
less, but look for even better quality. “Consumers want
something with true value, something that will last,” said
O’Donnell. “For us this means there is, and will
continue to be an excellent market for premium
automobiles.” This is backed by current sales forecasts
that indicate low double digit growth for the U.S. premium market for
this year through 2012.

Driven by stricter government regulations and changing social and
environmental expectations, BMW also believes premium fleet
composition will change in the future. According to O’Donnell,
premium will be defined increasingly by the overall emotional
experience rather than the shape, size, method of propulsion, number
of cylinders or the price. “In ten years, premium
automobiles will be desired for more than size and stature,” he
said. “It will no longer be about cylinders at all but
rather how what’s under the hood performs and how it provides a
seamless, emotional driving experience filled with delight and
joy.” A good example of BMW’s future mobility
direction is the three cylinder, diesel hybrid concept car called
Vision EfficientDynamics that has the performance parameters of an M3,
travels 0-60 in 4.8 seconds but achieves roughly 62 mpg and emits just
99 grams CO2 per kilometer.

In closing, O’Donnell made it clear that BMW will continue to
build on its DNA of great dynamics, innovation and aesthetics despite
the changing business environment. “We see many
significant opportunities to grow, prosper and continue to help
develop a future of sustainable mobility, and we at BMW are ready to
reinvent in every aspect of our business except to reinvent what we
stand for… the ultimate driving machine.”